Selling price and cost price of an article are in the ratio of 7 : 5. What will be the profit/loss percentage?

Options

A. 40% profit
B. 28.5% profit
C. 20% loss
D. 14.28% loss

Answer

To find the profit or loss percentage when the selling price (SP) and cost price (CP) of an article are in the ratio of 7:5, we can follow these steps:

### Step 1: Define the Ratios
Let the cost price (CP) be represented as 5x and the selling price (SP) be represented as 7x, where x is a common multiplier.

### Step 2: Calculate Profit
Profit is calculated as:
\[ \text{Profit} = \text{SP} - \text{CP} \]
Substituting the values we have:
\[ \text{Profit} = 7x - 5x = 2x \]

### Step 3: Calculate Profit Percentage
The profit percentage is calculated using the formula:
\[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{\text{CP}} \right) \times 100 \]
Substituting the values:
\[ \text{Profit Percentage} = \left( \frac{2x}{5x} \right) \times 100 \]

### Step 4: Simplify the Profit Percentage
Now, simplify the expression:
\[ \text{Profit Percentage} = \left( \frac{2}{5} \right) \times 100 = 40\% \]

### Conclusion
Thus, the profit percentage is **40%**.

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